lower deduction of Tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2010 please tell me what is Lower deduction of Tax(TDS), and what is LDT certificate, for what reason it is to be issued to party by ITO,

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

18 May 2010 If any organisation comes in to the loss in the financial
year then the organisation can claim to the IT department
by filling form no.13 rule 28 & 37 G by presenting the
balance sheet of current year & provisional year for
assessing the tax liability for that year. Then the
assessment officer will issue the lower deduction of tax or
Nil certificate. organisation can issue this certificate to
the customer for non deduction tds from our bill or
receiving payment.

CMA.Palani Arumugam

CMA.Palani Arumugam (Expert)
Follow

18 May 2010 Agreed. The Lower deduction certificate issued by the IT department is valid for one financial year only. If it want to avail lower deduction for next year also, then it has to apply again for lower deduction and get the certificate from the dept.

Upgrade to CAclubindia Pro. Subscribe Now!